US President Donald Trump and Turkish President Recep Tayyip Erdogan at the White House. EPA
US President Donald Trump and Turkish President Recep Tayyip Erdogan at the White House. EPA
US President Donald Trump and Turkish President Recep Tayyip Erdogan at the White House. EPA
US President Donald Trump and Turkish President Recep Tayyip Erdogan at the White House. EPA

The term populist doesn't go far enough when it comes to leaders who reject checks on their power


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The term “populist” is one of the buzzwords of our time. It has often been used in articles, op-eds and think pieces to describe leaders such as US President Donald Trump, Turkish President Recep Tayyip Erdogan, Indian Prime Minister Narendra Modi and Brazil’s president Jair Bolsonaro, to name but a few. Populists are politicians who claim to represent the people against a country’s elite and do so in a style that is brash and often aggressive.

Despite the downturn in US-Turkey relations, when Mr Trump met Mr Erdogan in Washington earlier this month, the two behaved like old pals. Although mainly for the cameras, the smiles also appeared genuine. Some called the bond between the two leaders a "bromance". Indeed, in many instances both have been considered prime examples of a populist leader.

However, I think it is high time we abandon the word “populist”. It has little real meaning, and definitions of who does and does not qualify as a populist are unclear.

A populist leader, according to Collins English Dictionary, is someone who claims to care about the interests and opinions of ordinary people. Some hold that populism is a thin ideology – that's to say, it is too flimsy or unsubstantial a set of beliefs upon which to base public policy and guide the nature of political governance. Populism is described as "thin" because, by itself, it does not have enough depth to provide a blueprint for political life, so it latches on to the politics of both the left and the right. That is why you can have left-wing populists such as the late Hugo Chavez of Venezuela as well as those on the right like Hungary's Viktor Orban.

Other commentators suggest that populist leaders are simply those who separate society into categories of “us” and “them”. The populist claims to represent the people against the "other", who might be the traditional elite, the supreme court, corporations, nefarious international forces or a hostile media.

However, the problem with these definitions is that who qualifies as a populist is very much in the eye of the beholder. Using the above definitions, doesn't former US president Barack Obama also fit the bill? Did he not claim to represent the little person against corporate interests and congressional lobbies while promising undefined change?

The idea that populism can be identified as politicians who claim to represent “the people” against “others” surely misses the mark. Categorising supporters and detractors into “us” and “them” is something that all politicians do. They seek power by claiming to represent as many segments of society as possible. Some do this more aggressively than others, but this is not populism; it’s just politics.

The other problem with the term populist is that it is not new. In any given decade since the beginning of the 20th century, there have been many charismatic politicians who fit the description of a populist. They come in all stripes and from all parts of the globe, from Ronald Reagan, Margaret Thatcher and John F Kennedy in the West to Gamal Abdel Nasser, Ruhollah Khomeini and Indira Gandhi in the East.

So instead of populist, let’s start using the term majoritarian. A majoritarian leader is a politician who believes their election to office has given them the right to make policies without having to consider minority interests or seeking a broad political consensus. In order to push through a political agenda, the majoritarian leader cares little for those with opposing views and seeks to subordinate institutions that stand in the way.

Majoritarian leaders believe that electoral success is the only real source of legitimacy. That is why they despise checks and balances on power, regardless of whether it be the judiciary, legislature, the media, civil-society organisations or political opponents. They view such constraints as contrary to the general will.

Mr Erdogan and Mr Trump are archetypal majoritarian politicians. They base their legitimacy on elections (six in five years in the case of Turkey) but are frustrated by limitations on their authority.

Mr Erdogan’s rule has been marked by his attempts to centralise power and erode institutional checks, including his subjugation of the judiciary and the independent media. He has also reduced parliament to little more than a rubber stamp while using a variety of tools to purge opponents and dominate political life throughout the country.

US democracy is different and has a significantly stronger foundation than that of Turkey. However, Mr Trump dislikes constitutional checks on his authority. He lashes out at reporters and media outlets and shows disdain towards congressional demands for oversight. He rejected the legitimacy of the FBI investigation into Russian meddling in the 2016 election and continues to make personal and public attacks on judges and their legal decisions.

By ditching the term populist and replacing it with majoritarian, we can put our finger on what exactly separates the Obamas from the Trumps, and the Macrons from the Erdogans. It also offers us a better understanding of why, despite the downward trajectory in bilateral relations, majoritarian leaders such as Mr Trump and Erdogan seem to understand each other and want to work together.

Simon Waldman is an associate fellow at the Henry Jackson Society and a visiting research fellow at King's College London

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Cinco in numbers

Dh3.7 million

The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown

46

The number, in kilograms, that Swarovski’s wedding gown weighed.

1,000

The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]

50

How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday

3,000

The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.

1.1 million

The number of followers that Michael Cinco’s Instagram account has garnered.